Blockchain Law Expert Disputes SEC's Classification of Solana (SOL) as a Security

Blockchain Law Expert Disputes SEC’s Classification of Solana (SOL) as a Security

Altcoin news, News

Blockchain law expert, Ryón Nixon, has disputed the SEC’s characterization of Solana (SOL) as a security in a recent tweet. Nixon, a founding partner of Horizons Law and Consulting, clarified that while he previously served as Solana’s genesis general counsel, his views expressed in the tweet thread are solely his personal thoughts and commentary.

I am @Solana’s genesis general counsel. SOL was mentioned in the SEC’s actions against @Coinbase and @Binance. The SEC is wrong to characterize SOL as a security. DISCLAIMER: These are my personal thoughts & commentary. I do not currently represent Solana Labs/Foundation 🧵

ryonnixon (@ryonnixon) June 28, 2023

Nixon emphasized the significance of the utility token SOL in accessing the Solana blockchain’s exceptional technology. According to him, SOL serves as the base unit of account that powers on-chain transactions and aligns all participants within the ecosystem. He also praised the Solana Foundation, describing it as an effective flywheel in the crypto space.

Referring to the Howey Test, a legal criterion used to determine whether an asset qualifies as a security, Nixon argued that it cannot be consistently applied to a complex and multifaceted asset like SOL. He further highlighted that Solana’s decentralized nature, with no gatekeepers controlling who builds on the platform, doesn’t align with the SEC’s three components for classifying a security.

Nixon believes that the ongoing disagreement will ultimately strengthen the Solana community and emphasized the project’s commitment to making a positive impact on the world.

Compiled by Coinbold

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